There are special loan programs for homeowners that can lower your interest rate.

The best way to receive a low interest secured loan is through a a home equity line of credit. A home equity line of credit has the option between a variable and fixed interest rate that is often lower than unsecured credit cards. Unsecured credit cards have high interest rates at 15%-29%. High interest rates can compound and make it extremely difficult to pay off a loan.

However, for homeowners there are special loan programs banks don't want you to know about that can save you up to 70% of interest. Secured borrowing means that lenders have an asset to back the loan up as collateral. This helps responsible borrowers unlock the lowest borrowing rate possible.

The best way to receive a low interest secured loan is through a a home equity line of credit. A home equity line of credit has the option between a variable and fixed interest rate that is often lower than unsecured credit cards. The interest paid on a home equity line of credit may also be tax deductible.

For example, if you have $50,000 in credit card debt at an average interest rate of 18%, it would cost you $750 per month in interest alone. If you took out a home equity line of credit for $50,000 at a variable rate of Prime - currently as of July 28th, 2022 at 4.75%, your monthly interest payment would be around $208. In other words, by using a home equity line of credit to pay off your credit card debt, you could potentially save $500 per month. That's $6000 per year!

HELOCs are able to lower your monthly payment two ways. The first is through loan terms that are much longer than personal loans for example. This can lower your monthly minimum required payments. The second way is by offering much lower interest rates.

For example, a home equity line of credit with a variable rate may start as low as Prime plus a margin. For context, the current Prime Rate in July 28th, 2022 is 4.75 percent. This means that if you qualify for a HELOC today, you could expect a rate around 6.5% based on your credit score.

When it comes to credit card debt, it's important to know all your options. A secured loan could be the best way to get out of debt and save money on interest. Don't let high interest rates trap you in a cycle of debt. Consider a secured loan to get the lowest borrowing rate possible and get out of debt faster. It could be the best decision you ever make

What is a credit card trap

A credit card trap refers to a situation where individuals may unknowingly fall into a cycle of debt and financial difficulties due to the terms and conditions associated with their credit cards. These traps often involve hidden fees, high interest rates, and deceptive practices that can make it challenging for cardholders to manage their debt effectively. It's important for consumers to be aware of the potential risks and carefully read and understand the terms and conditions before using credit cards to avoid falling into such traps.

Only the minimum payment

The minimum payment on a credit card is the lowest amount that cardholders are required to pay each month to keep their account in good standing. While it may seem convenient to make only the minimum payment, it's important to understand the potential consequences. By paying only the minimum, cardholders often end up paying significantly more in interest over time, as the remaining balance continues to accrue interest. This can result in a prolonged repayment period and higher overall costs. Moreover, relying solely on minimum payments can make it difficult to pay off the debt in a timely manner, leading to a potential cycle of debt and financial strain. It is generally advisable to pay more than the minimum whenever possible to reduce interest charges and expedite the process of becoming debt-free.

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Hitch, Inc. 23833672158 NW Toussaint Drive. Bend, Oregon 97703

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1. Qualified applicants may borrow up to 95% of their home’s value. This does not apply to investment properties.2. HELOCs have a 10-year draw period. During the draw period, the borrower is required to make monthly minimum payments, which will equal the greater of (a) $100; or (b) the total of all accrued finance charges and other charges for the monthly billing cycle. During the draw period, the monthly minimum payments may not reduce the outstanding principal balance. During the repayment period, the borrower is required to make monthly minimum payments, which will equal the greater of (a) $100; or (b) 1/240th of the outstanding balance at the end of the draw period, plus all accrued finance charges and other fees, charges, and costs.The lender will calculate this amount by taking the outstanding Account Balance on the last day of the draw period and dividing it by 240 months and then adding any finance charge that accrues but remains unpaid during the monthly billing cycle plus any other fees, charges and costs to the fixed principal payment that is due. During the repayment period, the monthly minimum payments may not, to the extent permitted by law, fully repay the principal balance outstanding on the HELOC. At the end of the repayment period, the borrower must pay any remaining outstanding balance in one full payment.3. The time it takes to get cash is measured from the time the Lending Partner receives all documents requested from the applicant and assumes the applicant’s stated income, property and title information provided in the loan application matches the requested documents and any supporting information. Most borrowers get their cash on average in 21 days. The time period calculation to get cash is based on the first 4 months of 2023 loan funding's, assumes the funds are wired, excludes weekends, and excludes the government-mandated disclosure waiting period. The amount of time it takes to get cash will vary depending on the applicant’s respective financial circumstances and the Lending Partner’s current volume of applications. Closing costs can vary from 3.0 - 5.0%. An appraisal may be required to be completed on the property in some instances.4. Not all borrowers will meet the requirements necessary to qualify. Rates and terms are subject to change based on market conditions and borrower eligibility. This offer is subject to verification of borrower qualifications, property evaluations, income verification and credit approval. This is not a commitment to lend.5. The content provided is presented for information purposes only. This is not a The content provided is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply.